Prentice disagreed with the analysis, but said government forecasts predict oil prices will remain around $62 a barrel over the next year, which could mean a $6.2-billion hole in Alberta’s budget – a number he equates with the entire payroll of the province.

“This is not just about shaving down salaries of the top Sunshine List employees,” he said.

“I could terminate the employment of every single employee of the Government of Alberta, leaving aside health care, and it would not fill a six- to seven-billion-dollar hole.”

The premier signalled that less spending, including possible cuts to public sector wages, would be required to make up the losses. He called on people to reflect on “burden-sharing.”

Too reliant on oil economy

The premier said volatility in oil price made it impossible to effectively plan for the future. He argued Alberta has become too dependent on natural revenues to prop up its budget.

“Suddenly, that has evaporated. Fifteen per cent of the province’s revenue stream has evaporated,” he told the crowd.

While oil is an important part of the economy, the province will need to look into ways of diversifying and finding more reliable sources of income, Prentice said.

Earlier this week, former finance minister Ted Morton publicly called for the government to consider a provincial sales tax. Prentice said while the proposal has long been considered politically unpopular, it was a discussion “we want to have.”

The province will consult with the public about potential remedies in advance of the next budget, the premier said.